Vanguilder Combines All Manufacturing Overhead into a Single Cost Pool

Multiple Choice

Vanguilder combines all manufacturing overhead into a single cost pool and allocates this overhead to products by using machine hours. Activity-based costing would likely show that with Vanguard's current procedures that:

A) all of the company's products are undercosted.
B) the company's high-volume products are undercosted.
C) all of the company's products are overcosted.
D) the company's high-volume products are overcosted.
E) the company's low-volume products are overcosted.